Oil prices drop after Libya announced oil exports resumption

The Togo-flagged tanker was intercepted by the Libyan coast guard (Photo: Internet)

Oil futures plunged on Wednesday as the market remained fixed on supplies resuming from Libya and rising trade tensions between the U.S. and China.

The market shrugged off bullish government data showing U.S. crude stockpiles slumped by nearly 13 million barrels last week, the biggest slide in nearly two years. [EIA/S] USOILC=ECI.

“In spite of the extraordinary draw in crude oil inventories, the market is under pressure after refiners produced a record amount of gasoline this week and in conjunction with a greater than expected build in distillate inventories,” said Andrew Lipow, president at Lipow Oil Associates in Houston.